Downsize and invest
Downsizing allows you to cash in your home equity without getting a loan or line of credit. Once your kids go off to college, you can sell your house and move to a different locality, city, or state where residential properties are considerably cheaper. For example, if you sell your house for $350,000 and manage to buy a smaller house in a different city for $250,000, you have $100,000 tax-free to create a diversified investment portfolio of stocks, bonds, dividend-producing investments and more.
